Giving insight into the instant commerce market, a recent report highlights that the instant commerce market is projected to account for approximately US$1.28 billion in grocery sales by 2024, accounting for 21 percent of total sales on these platforms. Is.
Focusing on speed and convenience
Adding further, “Instant commerce’s focus on speed and convenience aligns with consumers’ needs for efficient, on-demand grocery shopping experiences, playing a major role in online grocery adoption.”
Nearly 75 per cent of online grocery shoppers appear to have increased their unplanned purchases in the last six months, with the majority spending more than Rs 400 per order, according to the findings shared. report,
The study also shows that consumers are increasingly choosing the convenience and speed offered by these platforms, with the average order value being significantly higher than traditional stores.
Going further, the report found that this change in purchasing patterns has been facilitated by the ability of platforms to provide competitive pricing by eliminating many of the middlemen that traditional retail relies on.
But this has had an adverse impact on traditional grocery stores, which historically dominated the Indian grocery market, now facing existential threat.
And why not, as per this report, more than 82 percent of consumers have shifted at least one-fourth of their grocery spend from kirana stores to instant commerce platforms.
Further noting, “Instant commerce has witnessed an unprecedented pace of adoption, which has significantly impacted consumer behavior across the retail ecosystem.”
Said to be the fastest growing channel
But in the future, it will have much better prospects as it is “projected to experience a growth of 74 percent in 2024, making it the fastest growing channel during the 2023-28 forecast period with a 48 percent compound annual growth rate.” Will establish.” (CAGR),” the report said.
Initially these instant commerce platforms started with the delivery of groceries and essential items.
But now they have expanded their horizons to include a variety of products.
Be it electronics, clothing, cosmetics, home goods, medicines, pet supplies, books, sports equipment, they offer everything.
Taking an interesting turn, the report notes that nearly 75 percent of online shoppers have experienced a significant increase in unplanned purchases in the last six months.
“Unplanned shopping has increased due to increased confidence in getting groceries within 10 minutes through instant commerce platforms,” he added.
This recent study draws insights from a survey of 3,000 adults across 10 Indian cities, in-depth interviews with industry stakeholders and experts, grocery store owners, market data, broker reports and media reports, which was conducted during October 2024.
